(Il Sole 24 Ore Radiocor) European indices rebounded decisively on the Fed day and with the European Central Bank holding a dedicated meeting to discuss current market conditions and the increase in spreads and yields on government bonds. After news of the surprise meeting, the spread between BTP and the Bund dropped to 230 pips, with a return of less than 4%). The FTSE MIB in Milan is thus the best, driven by Banks Square, as well as CAC 40 in Paris, DAX 40 in Frankfurt, IBEX 35 in Madrid, AEX in Amsterdam and FT-SE 100 in London.
With the market rising 0.75 points in US interest rates, the highest level since 1994, and after selling in the past few sessions, investors are looking for buying opportunities and waiting for indicators from the US central bank. US index futures are also positive.
European Central Bank: Dedicated Summit on Markets, Anti-Proliferation Shield Hypothesis
The European Central Bank’s Governing Council will hold a special meeting to discuss current market conditions. The news that some media had expected was confirmed a Radiocore from central bank sources. Yesterday, Governor Isabelle Schnabel said in her speech at the Sorbonne in Paris that the ECB does not intend to tolerate fiscal fragmentation that could jeopardize the transmission of economic policy and that the ECB’s commitment “has no limits”. He added that the European Central Bank could establish and launch new anti-proliferation programs if needed.
Banks in a rally in Milan, behind Tenaris
As for the stock, Milan is driven by the rise of bankers, who have been in good shape across Europe after the disaster of past cycles. Therefore, Finecobank, Intesa Sanpaolo, Banco Bpm, Banca Pop Er and Unicredit are accelerating, which, moreover, has successfully completed the transfer of 1.1 billion euros of total credit for its non-performing portfolio to a special purpose company, Itaca Spv, through a securitization transaction. The Iveco Group also operates. Saipem, after winning an offshore contract in Brazil, is at odds with the European energy sector (-0.8% Euro Stoxx 600 in the sector and Eni and Tenares weak in Milan, with oil moving below par).
Spreads less than 230 pips, return less than 4%
A bearish trend in the spread between BTp and the Bund after Tuesday’s session, which was difficult for the fixed income sector and especially for BTp. The yield difference between the ten-year BTp benchmark (Isin IT0005436693) and the same German maturity, initially indicated at 246 points, four points lower than the close on the eve of 250 points and at the highest level since 2013, fell to less than 230 points and settled at 226. It fell The Italian 10-year bond yield, which opened lower to 4.19% from 4.23% at the previous close, is below 4%.